Investors are still worried about the worsening conditions of Poland's public finances – the preliminary budget for 2010 assumes a total budget gap of 7 percent of GDP. This in turn will delay the date of accession to the euro zone, which market participants consider to be a guarantee of Poland’s economic stability and creditworthiness.
The global stock exchanges however seem as if they don’t care about predictions for a strong correction and have again beaten their year-to-date maximums. This helped the WIG20 to mount a comeback on Wednesday and Thursday after a fall at the beginning of the week.Over the last few days, quite a lot of data on the Polish economy has been released. Consumer inflation rose again – in September the CPI indicator increased by 0.1 percent to a level 3.7 percent y/y. Industrial production and wages in the Polish corporate sector proved to be worse than expected.
Industrial production decreased last month by 0.2 percent y/y, whereas the market had forecast its rise by 0.4 percent y/y. The pace of wage growth came to 3 percent y/y, versus expectations of an increase by 3.7 percent y/y. These data, however, did not have too much of an impact on the WSE, which remained under the influence of the two aforementioned forces.
